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1) questions of proximate cause assume the existence of _____.
a.intervening cause
b.strict liability
c.actual cause
d.comparative fault
2) section 8 of the clayton act requires a _____ analysis of behavior for determining
liability.
a.quick-look
b.per se
c.secondary
d.rule of reason
3) under the model business corporation act (mbca), ultra vires may be asserted by:
a.a shareholder seeking to enjoin a corporation from executing a proposed action that is
ultra vires.
b.a federal judge who may have the power to dissolve a corporation that exceeds its
powers.
c.the management suing the corporation for damages caused by exceeding the
corporations powers.
d.the secretary of state who may have the power to enjoin an ultra vires act.
4) the debtor is also permitted to void _____ liens against exempt properties that impair
her exemptions.
a.medical
b.tax
c.attorney
d.judicial
5) which of the following actions constitutes the acceptance of an offer?
a.offeree made material alterations to the terms of the offer
b.offeree intended to enter the contract only if requisite changes were made
c.offeree reflected assent to the terms of the offer in the requisite manner
d.offeree suggested addition of new terms that were earlier not addressed in the offer
6) tom wrote a check to mary for $10. tom was careful and not negligent in the way he
wrote the check. nevertheless, mary cleverly altered the check to read $1,000. toms
bank cashed this check and deducted that amount from his account. which of the
following is correct?
a.tom is liable on this check, but only for $10.
b.tom is liable on this check for $1,000.
c.tom is liable on this check for nothing.
d.tom must reimburse the bank for any losses it suffers related to this check.
7) which of the following is true for a stop-payment order to be effective?
a.the order can come up to an hour after the check has been honored.
b.the bank must receive the order in a way that gives the bank a reasonable opportunity
to act.
c.the bank can receive the order after it has certified the check.
d.the order must be in a written format for the bank to be able to recognize it as the
check corresponding to the stop-payment order.
8) the damages recoverable in a patent infringement case cannot be less than:
a.court costs and interests.
b.reasonable royalty for the invention by the creator.
c.reasonable royalty for the use of the invention by the infringer.
d.three times the damages actually suffered, and to be decided by the court.
9) which of the following is true regarding promissory estoppel?
a.it requires reasonable reliance on the promisees promise.
b.it requires a written promise.
c.it requires consideration.
d.it applies only when one party is a merchant.
10) under article 2 of the ucc, why does it matter whether a party to a contract is a
merchant?
a.it is the test for applying article 2 of the ucc.
b.merchants sometimes are treated differently than other parties.
c.all contracts in which one or both parties are merchants are handled under article 2a of
the ucc.
d.article 2 does not concern itself with cases regarding the transactions of goods.
11) miranda leased an apartment, which had broken floorboards, from gail. she invited
her friend claire for dinner one evening to the apartment; during the course of the
evening, claire slipped on the floorboards and broke her ankle. which of the following
is true of the case?
a.claire cannot recover any monetary damages.
b.claire cannot recover any damages for trauma.
c.claire can recover damages only from miranda.
d.claire can recover damages from gail.
12) acme corp. has captured 90 percent of the national market for commodity x. acme is
most likely to be liable for monopolization under section 2 of the sherman act, if x is:
a.felt-tip pens.
b.cellophane.
c.mens socks.
d.yellow notepads.
13) dee frost, president of the american refrigerator and freezer producers association
(arfpa) and ceo of frozenaire corp. (one of the nations largest manufacturers of
refrigerators and freezers), delivered the keynote address at the arfpas annual
convention in siberia, montana. in her speech, frost addressed the assembled members
on the credit sales problem currently confronting the industry. according to frost, this
problem was a result of refrigerator and freezer manufacturers increasing tendency to
sell appliances on credit instead of requiring payment in full upon delivery--a tendency
that, in frosts view, had led to negative price trends in the industry. frost asserted that if
refrigerator and freezer producers would refuse to permit credit sales and would insist
upon payment in full upon delivery, prices would return to a reasonable level that serves
the interests of the industry and consumers. she concluded her remarks by assuring
those in attendance that frozenaire would do its part by unilaterally saying sorry,
pardner to requests for purchases on credit. a few months after the arfpa meeting, the
u.s. justice department filed a sherman act section 1 lawsuit against frozenaire and the
other arfpa members, citing evidence that all arfpa members eliminated credit sales
within one month after the meeting. is the justice departments action proper? explain
your reasoning.
14) which of the following is one of the four material elements required for meeting the
substantially-equal-work condition for application of the equal pay act?
a.equal training opportunities
b.equal remuneration
c.equal responsibility
d.equal bonus structure
15) on may 1, 1985, mint, a 16-year-old, purchased a sailboat from sly boats. mint used
the boat for six months, at which time he advertised it for sale. which of the following
statements is correct?
a.the sale of the boat to mint was void, thereby requiring mint to return the boat and sly
boats to return the money received.
b.sly boats has the power to recover the boat from mint because he has advertised it for
sale.
c.mints use of the boat for six months after the sale on may 1 constituted a ratification
of that contract.
d.mint may disaffirm the may 1 contract at any time prior to reaching majority.
16) the sec has defined the intrastate offering exemption more precisely in rule 147.
according to this rule:
a.intrastate resale of such securities is permitted for nine months.
b.interstate resale of such securities is permitted for nine months.
c.intrastate resale of such securities is permitted for twelve months.
d.interstate resale of such securities is permitted for twelve months.
17) under chapter 12 of the bankruptcy act:
a.only farms with an aggregate debt exceeding $5 million are covered.
b.the debtor must cease to operate the farm.
c.no trustee is appointed.
d.the debtor is usually permitted to remain in possession to operate the farm.
18) ace, bud, and chet leased an apartment from stan slumlord. they signed a lease that
established a 12-month rental period at $400 per month as rent. two months after the
three tenants moved into the apartment, ace and bud moved out. ace and bud each
moved to a differentand distantstate. slumlord insists that chet is responsible for the
entire $400 per month rent. is slumlord correct?
a.slumlord is incorrect. under these facts, each tenant is responsible for one-third of the
rent payment as an implied term of the lease agreement.
b.slumlord is correct. the tenants are jointly and severally liable for the rent payments
under the lease.
c.slumlord is incorrect. this is a tenancy at sufferance, meaning that any tenant may
vacate without incurring liability for further rent payments.
d.slumlord is correct, if the lease was executed in a state that has adopted the uniform
residential landlord- and tenant act.
19) richard sells land to jones but reserves the mineral rights to the property as well as
an easement to enter the land to remove the minerals. richard has acquired easement by:
a.prescription.
b.grant.
c.reservation.
d.implication.
